Joe and Ed go to a diner that sells hamburgers for $5 and hot dogs for $3. They agree to split the lunch bill evenly. Ed chooses a hot dog. The marginal cost to Joe then of ordering a hamburger instead of a hot dog is
A) $1.
B) $2.
C) $2.50.
D) $3.

Question

Quizplus · Accepted Answer

The marginal cost to Joe of ordering a hamburger instead of a hot dog is the difference in price between the two items, which is $5 - $3 = $2.

Joe and Ed Go to a Diner That Sells Hamburgers